Carlsbad Seawater DesalinationProject Status Report                            Water Planning Committee                   ...
Todays Status Report on CarlsbadDesalination Project1. Status of WPA Negotiations2. Status of Due Diligence Activities3. O...
Status of Negotiations for a Water PurchaseAgreement Final Draft Agreement under production   All major deal points and ...
Other Carlsbad Desalination Project Related Issues Bond and Financing Process Advancing   Draft documents prepared and u...
Other Carlsbad Desalination Project Related Issues (Continued) Incorporation of Carlsbad desalination into rates and char...
Upcoming Meetings August 9th Board workshop     Overview of Key Provisions in Draft WPA     Assignment of risk to the p...
Water Planning Committee Meeting          July 26, 2012
Current State Water Resources Control Board Regulatory Framework State Water Board regulates ocean intakes and discharges...
Proposed Ocean Plan Amendment SWRCB has initiated a process to amend the ocean  plan to specifically address desalination...
State Water Board Amendment Process Public meetings on the process held to date    Stakeholder Meeting - April 18, 2011 ...
Scientific Studies1. Salinity Toxicity Studies       “Preliminary final draft” released on July 16, 20122. Expert Panel o...
Key Concerns Identified to Date Overall concerns    Proposed amendments need to recognize site-specific nature     of pr...
Public Involvement Stakeholder engagement    Water Authority    CalDesal    Desalination agencies    Environmental gr...
Schedule and Next Steps Public Workshop on August 22nd in Sacramento    Present findings of scientific studies    Publi...
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Update on Carlsbad Seawater Desalination Purchase Agreement

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Update on Carlsbad Seawater Desalination Purchase Agreement

  1. 1. Carlsbad Seawater DesalinationProject Status Report Water Planning Committee July 26, 2012 1 1 1
  2. 2. Todays Status Report on CarlsbadDesalination Project1. Status of WPA Negotiations2. Status of Due Diligence Activities3. Other Project Related Issues4. Upcoming Board and Other Public Meetings 2
  3. 3. Status of Negotiations for a Water PurchaseAgreement Final Draft Agreement under production  All major deal points and key provisions previously reviewed by Board Advisory Group  Commercial terms  Economic terms  Resizing of minimum annual commitment to 48 TAF included in final draft  Technical appendices near completion Due Diligence status  Finalizing financial pro-forma assumptions to reflect terms and conditions of Draft WPA  Poseidon finalizing price for construction and operations based on Water Authority direction 3
  4. 4. Other Carlsbad Desalination Project Related Issues Bond and Financing Process Advancing  Draft documents prepared and under review  Ensure Project is investment grade  BBB- or better July 26th Water Planning Committee  Energy Pricing Workshop  SWRCB development of intake and discharge guidelines for seawater desalination at July 26 Water Planning Draft Design Build Agreement for conveyance pipeline being developed Pricing for improvements at Twin Oaks WTP under discussion 4
  5. 5. Other Carlsbad Desalination Project Related Issues (Continued) Incorporation of Carlsbad desalination into rates and charges  Presented workshop information to member agency managers  Meet again with member agency managers and finance officers in August  Return to Board at August meeting with information item on alternatives and member agency comments Contracts with member agencies for purchase as local supply  Meeting scheduled with interested member agencies on July 31st  Provide draft Water Authority – Member Agency agreement in August  60 day member agency review period begins with distribution of Draft WPA 5
  6. 6. Upcoming Meetings August 9th Board workshop  Overview of Key Provisions in Draft WPA  Assignment of risk to the parties  Detailed discussion on pricing August Regular Board Meeting  Continue discussion on incorporation into rates and charges  Presentation on desalination and supply reliability  Update on member agency local supply planning September Regular Board Meeting  Continue discussion on key provisions of Draft WPA  Review actions related to Pipeline 3 rehabilitation, Twin Oaks and other distribution system activities September Public Meetings (Two)  Evening Water Planning Committee meeting in Carlsbad  Evening Water Planning Committee Meeting in Kearny Mesa 6
  7. 7. Water Planning Committee Meeting July 26, 2012
  8. 8. Current State Water Resources Control Board Regulatory Framework State Water Board regulates ocean intakes and discharges  Intakes (California Water Code)  Discharges (NPDES permit and Ocean Plan) Ocean Plan does not specifically address desalination nor does it have a salinity objective  Current regulations address desalination impacts  Carlsbad desalination project was fully permitted under existing regulatory structure 8
  9. 9. Proposed Ocean Plan Amendment SWRCB has initiated a process to amend the ocean plan to specifically address desalination projects  Identified as very high priority in Triennial Review  On-going planning for multiple ocean desalination facilities Proposed components of amendments  Narrative objective for salinity (specific % over background)  Provisions to minimize marine life impacts  Implementation provisions 9
  10. 10. State Water Board Amendment Process Public meetings on the process held to date  Stakeholder Meeting - April 18, 2011  CEQA Scoping Meeting - March 30, 2012 State Board initiated a series of technical scientific studies to address information gaps related to proposed amendments 10
  11. 11. Scientific Studies1. Salinity Toxicity Studies  “Preliminary final draft” released on July 16, 20122. Expert Panel on Intake Impacts and Mitigation  Public meeting on November, 2011  Final report released March 14, 20123. Expert Panel on Impacts and Effects of Brine Discharges  Public meetings on July 5 and December 8-9, 2011  Final draft released March 2012 11
  12. 12. Key Concerns Identified to Date Overall concerns  Proposed amendments need to recognize site-specific nature of projects Intake  Expert panel conclusions generally consistent with Carlsbad permits  State Board acknowledges that not all technologies are feasible or cost effective at every site Brine discharge  Salinity toxicity study findings generally concur with Carlsbad permit findings  Statewide salinity objective not appropriate  Not based on site characteristics, including species tolerances  Proposed amendments need to allow flexibility to use different salinity mitigation strategies 12
  13. 13. Public Involvement Stakeholder engagement  Water Authority  CalDesal  Desalination agencies  Environmental groups  Poseidon Resources Technical studies review under way  CalDesal agencies and experts reviewing to identify specific concerns  Comment letters to the Board will be prepared 13
  14. 14. Schedule and Next Steps Public Workshop on August 22nd in Sacramento  Present findings of scientific studies  Public comments Public review draft and comment period Public hearing before State Water Board 14

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